Chua Company Has Current Liabilities Totaling $1,500,000 and the Following

Chua Company has current liabilities totaling $1,500,000 and the following assets on December 31 of the current year: $\begin{array}{lr}\text { Cash } & \$ 300,000 \\\text { Accounts receivable, net } & 600,000 \\\text { Inventory } & 960,000 \\\text { Prepaid expenses } & 25,000 \\\text { Equipment, net } & 2,200,000 \\ \text { Total assets } & \$ 4,085,000 \\\end{array}$ How much is the company's acid-test ratio on December 31?

A) 0.20
B) 0.60
C) 1.26
D) 1.24